LP Reports First Quarter 2018 Results

NASHVILLE, Tenn.--(BUSINESS WIRE)--May 7, 2018--
Louisiana-Pacific Corporation (LP) (NYSE: LPX) reported results today
for the first quarter of 2018, which included the following:

Sales for the first quarter of $691 million were higher by 13 percent
compared to the year ago quarter.

Income from continuing operations was $95 million ($0.65 per diluted
share) compared to $55 million ($0.38 per diluted share) in the first
quarter of 2017.

Non-GAAP adjusted income from continuing operations was $93 million
($0.63 per diluted share).

Adjusted EBITDA from continuing operations for the first quarter was
$159 million compared to $114 million in the first quarter of 2017.

“We continued to make progress on our key strategic objectives in the
first quarter,” said Brad Southern, LP Chief Executive Officer. “Our
results benefited from higher OSB prices and we delivered strong
performances in our engineered wood products and South American
operations. However, recent rail transportation system issues in Canada
caused unplanned downtime at our operations, increased inventory and
late shipments, which negatively affected our reported results. In our
Siding business, we believe underlying demand for our products remains
strong, and we continue to be on track to achieve our targeted 12-14%
full year revenue growth for SmartSide.”

FIRST QUARTER RESULTS

For the first quarter of 2018, LP reported net sales of $691 million, up
from $611 million in the first quarter of 2017. For the first quarter,
LP reported operating income of $127 million as compared to $75 million
in the first quarter of 2017. LP reported income from continuing
operations of $95 million, or $0.65 per diluted share, as compared to
$55 million, or $0.38 per diluted share for the first quarter of 2017.
Adjusted EBITDA from continuing operations in the first quarter of 2018
was $159 million compared to $114 million in the first quarter of 2017.

SIDING SEGMENT

The Siding segment consists of LP SmartSide® siding as well as LP
CanExel® prefinished siding line and a minor amount of OSB. These
products are used in new construction, repair and remodeling and
non-residential markets. The Siding segment reported net sales of $227
million in the first quarter of 2018, an increase of $13 million from
$214 million in the first quarter of 2017. For the first quarter of
2018, the Siding segment reported operating income of $45 million
compared to $41 million in the first quarter of 2017. For the first
quarter of 2018, adjusted EBITDA from continuing operations for this
segment was $54 million compared to $49 million in the first quarter of
2017. The increase in OSB sold in this segment accounted for
approximately $3 million of the increased adjusted EBITDA from
continuing operation for this segment.

ORIENTED STRAND BOARD (OSB) SEGMENT

The OSB segment manufactures and distributes OSB structural panel
products. The OSB segment reported net sales of $313 million in the
first quarter of 2018, an increase of $45 million from $268 million of
net sales in the first quarter of 2017. For the first quarter of 2018,
the OSB segment reported operating income of $97 million compared to $61
million in the first quarter of 2017. For the first quarter of 2018,
adjusted EBITDA from continuing operations for this segment was $113
million compared to $76 million in the first quarter of 2017. The
increase in selling price favorably impacted operating results and
adjusted EBITDA from continuing operations by approximately $46 million
for the quarter as compared to the first quarter of 2017.

ENGINEERED WOOD PRODUCTS SEGMENT (EWP)

The EWP segment is comprised of LP SolidStart® I-Joist (IJ), Laminated
Veneer Lumber and Laminated Strand Lumber (LVL and LSL). EWP reported
net sales of $101 million in the first quarter of 2018, an increase of
$19 million, from $82 million in the first quarter of 2017. For the
first quarter of 2018, the EWP segment reported operating income of $3
million compared to $1 million in the first quarter of 2017. For the
first quarter of 2018, adjusted EBITDA from continuing operations for
this segment was $7 million compared to $5 million in the first quarter
of 2017.

SOUTH AMERICA SEGMENT

The South American segment consists of facilities in Chile and Brazil
and sales offices in Peru and Argentina. The segment reported net sales
of $42 million in the first quarter of 2018, an increase of $4 million
from $38 million in the first quarter of 2017. For the first quarter of
2018, the South America segment reported operating income of $9 million
compared to $5 million in the first quarter of 2017. For the first
quarter of 2018, adjusted EBITDA from continuing operations for this
segment was $11 million compared to $7 million in the first quarter of
2017.

COMPANY OUTLOOK

“We expect the strength in the housing market to continue in the second
quarter and the demand for our products to remain robust,” Southern
said. “We are focused on innovating to meet market needs and continue to
diversify LP away from the commodity OSB cycle by growing our specialty
products, including value-add products such as LP SmartSide Trim and
Siding, LP FlameBlock® fire-rated sheathing and LP Legacy® premium
sub-flooring. The fundamentals of our business remain strong and we are
confident in our ability to drive enhanced value for shareholders.”

About LP

As a proven leader in high performance building solutions, LP Building
Products manufactures uniquely engineered, innovative building products
that meet the demands and needs of the building industry. Its extensive
product portfolio includes durable and dependable exterior siding and
trim systems, engineered wood framing and structural panels for
single-family homes, multifamily projects, repair & remodel markets,
light commercial facilities and outdoor buildings. LP also provides
industry leading service and warranties to help customers build smarter,
better and faster. Founded in 1973, LP is a global company headquartered
in Nashville, Tennessee, and traded on the New York Stock exchange under
LPX. For more information, visit LPCorp.com.

FORWARD LOOKING STATEMENTS

This news release contains statements concerning Louisiana-Pacific
Corporation's (LP) future results and performance that are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Factors that could cause actual results
to differ materially from those expressed or implied by the
forward-looking statements include, but are not limited to, the
following: changes in governmental fiscal and monetary policies and
levels of employment; changes in general economic conditions; changes in
the cost and availability of capital; changes in the level of home
construction and repair activity; changes in competitive conditions and
prices for our products; changes in the relationship between supply of
and demand for building products; changes in the relationship between
supply of and demand for raw materials, including wood fiber and resins,
used in manufacturing our products; changes in the cost of and
availability of energy, primarily natural gas, electricity and diesel
fuel; changes in the cost of and availability of transportation; changes
in other significant operating expenses; changes in exchange rates
between the U.S. dollar and other currencies, particularly the Canadian
dollar, Brazilian real and Chilean peso; changes in general and
industry-specific environmental laws and regulations; changes in tax
laws, and interpretations thereof; changes in circumstances giving rise
to environmental liabilities or expenditures; the resolution of existing
and future product-related litigation and other legal proceedings; and
acts of public authorities, war, civil unrest, natural disasters, fire,
floods, earthquakes, inclement weather and other matters beyond our
control. These and other factors that could cause or contribute to
actual results differing materially from those contemplated by such
forward-looking statements are discussed in greater detail in the
company's Securities and Exchange Commission filings.